19 Reasons You’re Not a Millionaire (Yet)

Most likely a confluence of factors are keeping you from becoming wealthy, rather than any single cause. Here are 19 reasons you’re not a millionaire (yet). Take a good look at how many of them might apply to your situation.

YouSpendMoreThanYouMake

Ifyoufailtodothisone simplething,itdoesn’tmatterhowmuchmoneyyoumake —you’llalwaysfindthatyoudon’thave enoughmoneytomakeendsmeet.Of course, living within your means isn’t enough on its own to make youamillionaire.Youhavetotakeitastepfurtherandactivelysaveandinvestaportionof allthemoneythatyoumake.

You Replace Things Too Soon

If you’re the type of person who is constantly replacing products that still have a useful life in order to buy the latest and greatest gadgets, chances are that you’ll have a difficult time building the type of wealth that you want. People who are able to afford the newest and shiniest things by upgrading every year are those who have already built their wealth, not those that are currently trying to.

YourHouseIsTooBig

Somepeopleassumethatpurchasingabighouseisagoodinvestment.Whilethiscanbethecase, purchasingmorehousethanyoucanaffordisagoodwaytomakesurethatyou’reunabletocreatereal wealth.It’s not just that you have bigger mortgage payments. Your expenses also get bigger: property taxes, insurance premiums, furnishings, and maintenance.

You Keep Buying New Cars

Manypeoplefailtorealizethatcarsaredepreciatingassets — and as such they’re not to be confused with investments. If your career requires you to have a new looking car, consider leasing a vehicle. Otherwise, try not to worry about what your car looks like so you can be content with it longer.

You Have Kids

They may be loveable but children are very expensive — especially if you have them when you are young and have a limited income. It’s nearly impossible to put money aside when you’re young with children — all of your extra cash ends up going toward the children’s care instead of being invested for wealth creation.

You’re Divorced

Just as getting married can be a wonderful way to help build wealth, getting a divorce usually has the exact opposite effect. That’s not to say that you should stay in a marriage solely for financial reasons, but it’s important to know that divorce is usually a giant wealth destroyer — and if you’re already divorced, it can be one of the more significant reasons you’re not a millionaire.

You Have Bad Habits

Classic bad habits are smoking, gambling and drinking alcohol, but a bad habit could be anything that costs money you don’t need to be spending — like that daily cup of coffee or the three sodas that you drink each day. It doesn’t even have to be buying things. Being lazy and sitting in front of the TV five hours a day instead of working on making yourself better is also a bad habit that hurts wealth creation.

YouDon’tPayYourselfFirst

Oneofthemostfundamentalstepsthatyoucantaketoensurethatyouputawaymoneyforyourselfis topayyourselfbeforeyoupayanybodyelse.The simplest way to do this is to set up a 401(k) plan with your employer, since that takes the money out of your paycheck before it can go to you.

YouIgnoreYourFinances

Therearealotofpeoplewhowishthattheirfinanceswouldsimplytakecareofthemselves,buttaking onthattypeofattitudeisasurewaytohaveyourfinancesbecomeamess.Leavingthemaloneandhopingthattheysomehowtakecareof themselvesinsteadofactivelymonitoringthemandmakingneededchangesasissuesariseisunrealistic. You also don’t spend time looking for additional revenue or you aren’t focusing on developing multiple streams of income.

You’reToo Risk Averse

Inordertogrowyourmoney;youaregoingtohavetotakesomerisk. If you don’t, youend uplosingmoneytoinflation.Thisdoesn’tmeanthatyouwanttogooutandtake on speculative investments,butyou havetotakealong-termviewandtakecalculatedrisksinordertogrowyourmoney.

You Pay High Fees on Your Investments

There is nothing wrong with getting the opinions of others to help you lay out a plan to build your wealth, but it’s important to be an active participant in this planning. Paying full price for financial advice can cut into some of the upside you would otherwise enjoy. Giving full control of your finances to somebody else creates a situation where you’re no longer in control of your financial future, and the only one who you can truly trust to be looking out for your best financial interests is yourself.

YouInvestinThingsThatYouDon’tFullyUnderstand

You canlosealotofmoneyquicklyby investinginthingsthatyoudon’tfully understand — then you’re notabletodeterminetheamountofriskyou’retaking. Take the time to learn how things work before you put money into them and you stand a better chance of becoming a millionaire.

YouLackDiversification

Whilenothavingdiversifiedinvestmentsmaynotseemlikeabigdealwhenthefewinvestmentsyou haveareridinghigh, once they take a tumble you might feel differently. Justlikeyouwanttohavemorethanoneegginyourbasket, youwanttomakesurethatyoudiversifytolimittherisksofwipingoutallyourwealthwhenone investmentgoesbad.

YouHaveOnlyOne Source ofIncome

Ifyouderiveyour incomefromanumberofdifferentsourcesratherthanasingleone,you’reinapositiontobeableto betterprotectyourwealthifyoushouldloseajob.Diversifying will save you from drainingthe wealththatyouhaveamasseduptothatpoint.

You Fail To Take Care Of Your Health

Getting sick can drain your finances and push you into bankruptcy if you’re not careful While you may not be able to control all aspects of your health, there are certainly steps that you can take to make sure that you’re as healthy as you can possibly be. Eating right, getting exercise, taking preventative measures, getting annual check-ups and taking care of medical problems before they become truly serious all put you in a position to live a healthier life.

Reasons You’re Not a Millionaire

Even if you have a high-paying job, if you spend more than you make that could keep you from being able to save and invest. Most likely there are several reasons you’re not a millionaire. Fortunately, it’s never too late to start trying to get there.

Readers, what are the reasons you’re not a millionaire — and which ones are the biggest issues?

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